Accounting syllabus, dot point by dot point
Every dot point in the WA Accounting syllabus, in syllabus order, with a focused answer for each. Open any dot point for the answer, exam-style questions and links to related points.
Unit 3: Financial Accounting
Unit overview →How does the Conceptual Framework define the five elements of financial statements, and when is each one recognised in the accounts?
How does a business account for customers who may not pay, using bad debts written off and an allowance for doubtful debts?
What makes financial information useful, and how do the fundamental and enhancing qualitative characteristics shape a general purpose financial report?
How does the Conceptual Framework guide the preparation of useful financial reports for a reporting entity?
How does a company record the issue of shares, the payment of dividends, and the appropriation of profit?
How are balance day adjustments processed and used to prepare a company's financial statements?
How is the cost of a non-current asset allocated over its useful life and what happens on disposal?
How does a company appropriate its profit through dividends and reserves, and how do these movements flow through retained earnings?
How does the accrual basis create accrued and prepaid items at balance day, and how are revenues and expenses adjusted to the correct period?
How is inventory valued using the first-in first-out method, and how does this determine cost of sales and closing inventory?
How is a Statement of Cash Flows prepared, and what do its operating, investing and financing sections reveal about a company?
How does the Statement of Changes in Equity reconcile the opening and closing equity of a company across each component?
Unit 4: Cost and Management Accounting
Unit overview →How are costs classified and how does their behaviour affect management decisions?
What are the limitations of ratio analysis, and how should non-financial and ethical factors inform a financial decision?
How does a business prepare and use budgets to plan and control its operations and cash flow?
How does a business protect its cash and other assets through internal control, and why is cash the highest-risk asset?
How do the operating and financial budgets combine into a master budget that produces budgeted financial statements?
How does variance analysis compare actual results with the budget, and what do favourable and unfavourable variances tell management?
How do financial ratios help users assess the profitability, liquidity and stability of a business?
How can cost-volume-profit analysis identify the break-even point and the output needed for a target profit?
How do liquidity and gearing ratios measure whether a business can pay its short-term debts and how heavily it relies on borrowed funds?
How do profitability and efficiency ratios measure how well a business generates profit and uses its assets?
How do manufacturing costs flow through direct materials, direct labour and overhead to a cost of goods manufactured and then cost of sales?